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AAIS is second to none in its commitment to serving farm and agriculture
insurers with sound programs. Whether you are a regional farm insurer, a
national carrier, or an MGA program writer, you will find no better
combination of product platforms and support service for insuring family
farms or large commercial farming ventures.
More than 150 companies, combined, write more than $500 million of premium
each year using AAIS farm and ag products. That figure includes half of the
top farm insurers in the county, but does not include more than 250 farm
mutual insurers in seven states that access AAIS programs through their
mutual associations.
The Agricultural General
Liability Program,
our most recent new program, is the first
standardized general liability program specifically designed for farms
and agribusinesses. As such, its forms and manual classifications may
fundamentally remake the way liability coverage is structured for all
types of agricultural enterprises.
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The AgGL program features two base forms, each of which can be
written on a stand-alone basis or combined in a package policy with any
other farm, property, auto, and workers compensation monoline form:
- The Farm Commercial Liability Form limits coverage to
farming and certain related operations, but allows coverage for
additional exposures to be added by endorsement or dec page entry.
- The Agribusiness Commercial General Liability Form
functions like a traditional CGL policy in that it provides coverage
for all operations of an insured except those explicitly excluded.
Personal liability coverage: Available by endorsement to both
base forms.
Chemical drift coverage: "Farm Chemical Limited Liability"
coverage built into both base forms.
"Agritainment":
- The Farm Commercial Liability Form excludes coverage for educational
and recreational activities undertaken for compensation, but
coverage can be added by identifying such activities on the
declarations.
- There is no restriction of coverage for such activities under
the Agribusiness Commercial General Liability Form, but coverage can
be excluded by endorsement.
Custom farming:
- Specifically defined and insured under the Farm Commercial
Liability Form, provided receipts from such operations do not exceed
an established annual threshold.
- Covered unless explicitly excluded under the Agribusiness
Commercial General Liability Form.
Exclusions:
Extensive and up-to-date, including exclusions that address liability
from certain logging or lumbering operations, the Migrant and Seasonal
Agricultural Worker Protection Act, and animal diseases.
Program manual:
Contains more than 300 agricultural classifications organized into 21
categories. For most classes, the rating information supplants
traditional acreage-based rating with sales-based rating information
that is more sensitive to inflation and better reflects the growing
percentage of agricultural revenue from sources other than commodity
sales. |
The Agricultural Output
Program,
introduced in 2001, was the industry's first standard program for
insuring property exposures of an integrated agribusiness enterprise.
The "AgOP" provides a streamlined base for insuring agricultural risks
that don’t fall into standard commercial classifications, and its
flexible rating procedure is ideally suited to the unique and varied
nature of agricultural operations.
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Modeled in part after the AAIS Commercial Output Program (COP), the AgOP
provides broad commercial property and inland marine coverage in a
single policy form. Coverage for builders risk, computers, and mobile
equipment is provided in the same form as coverage for buildings and
personal property, including stock.
By doing this, the AgOP simplifies
the process of structuring property coverage for an agribusiness
account. The combination of commercial property and inland marine
coverages in a single form reduces the potential for coverage gaps that
can occur when property forms are packaged with inland marine floaters.
Also, coverage for computers, mobile equipment, and other inland
marine exposures applies to the extent usually provided when written
under stand-alone inland marine floaters, including coverage for loss
caused by flood and earthquake. Earthquake and flood coverage for loss
to building property, other personal property, and stock can be provided
by endorsement.
In addition, four time element options are available in the base
form, and a separate crime coverage part provides a broad range of
options that incorporate features of highly competitive commercial crime
programs.
At the same time, the AgOP gives insurers several ways to control
their exposure. Most importantly, carriers can determine individual
sublimits for additional, extended, supplemental, and crime coverages by
entering them in the declarations. By putting "0" for an entry, a
carrier can exclude the coverage, in effect.
AgOP users can also choose between blanket or scheduled coverage, or
combine the two by granting blanket coverage with exceptions for certain
scheduled locations, structures, equipment, stock, or other personal
property. |
The
AAIS
Farmowners Program
is the program of choice for hundreds of farm carriers and their reinsurers.
It was the first standard program to introduce modular components for
writing residential property, farm property, and liability coverage for
farms. It recently introduced the industry's first standardized equipment
breakdown coverage parts for farm and household equipment.
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The
AAIS Farmowners Program utilizes a three-tiered approach to policy
construction:
- A choice among five residential property forms: basic perils,
broad perils, open perils-dwelling, open perils-dwelling and
contents, and tenants
- One streamlined farm property form for insuring farm structures
and scheduled and/or unscheduled farm property
- Four options for liability coverage: AAIS farm personal, AAIS
farm commercial, AAIS general commercial, or any industry CGL
(A policy can also be written for property coverage only.)
The program provides the industry's only standard endorsement option
for insuring home-based businesses under a farmowners policy, plus the
equipment breakdown coverage options for both farm and household
equipment.
The program also includes an income coverage option written to apply
only to specified farm activities identified on a schedule and to avoid
open-ended exposure for the diverse activities that can take place on
farms. |
The Farm
Inland Marine Program,
introduced in 2007, provides standardized forms and rating information
for insuring unique farm and agricultural exposures. Its forms can be
used with AAIS or independent insurance programs.
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This
program includes updated Farm Machinery and Livestock forms and rating
information previously provided under the AAIS Personal Inland Marine
Program. It also includes forms and rating information for a newly
developed Farm Irrigation Equipment class.
While the language in the
Farm Inland Marine forms address both family farms and commercial
farming ventures, the policy provisions are patterned primarily after
those used in commercial lines. |
The Farm Properties
Program provides forms, rules, and rating
information for writing fire and extended coverages for farm dwellings,
outbuildings, and farm personal property. These monoline policies help
insurers write accounts that don't need or qualify for a package policy,
such as farm rental properties and vacant farmsteads.
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The
Farm Properties Program provides three residential property forms that
correspond with those in the Dwelling Properties Program, with an option
to exclude a dwelling and insure only the farm property.
The forms
provide five principal coverages: residence, personal property,
additional living costs/fair rental value, farm personal property, farm
barns/buildings/structures.
The program includes farm-specific coverage options, including
coverage for added animal perils, livestock blizzard peril, and
borrowed/rented/leased farm machinery. |
The Farm Umbrella Program, the
industry's first such program, provides both a farm personal and a farm
commercial umbrella form to coincide with the underlying farm liability
policy.
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Both
the personal and commercial umbrella forms can be written over
underlying policies from any source that cover liability arising from
autos, recreational vehicles, watercraft, employment-related injury, and
other causes.
Umbrella coverage for these exposures applies strictly
on a "follow form" basis, thus protecting an umbrella carrier from
exposure to liabilities that have not been underwritten and priced in
the underlying layers. |
American Association of
Insurance Services
1745 S. Naperville Road | Wheaton, IL 60189-5898
630-681-8347 | 800-564-AAIS | Fax 630-681-8356
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